Topic of the Week - UK Parcel Locker Market Sees Significant Growth
The UK parcel locker market has experienced significant growth over the past year, with two in five adults (21 million) utilising parcel lockers to collect, return, or send parcels. This trend is expected to continue, with 20% of online shoppers who have not used parcel lockers yet expressing interest in doing so. According to research by InPost and Retail Economics, the data highlights a shift in consumer delivery preferences amongst online shoppers in the UK. The research, which was based on a survey of 2,000 households and parcel volume data, provides valuable insights into the growing demand for parcel lockers.
The key statistics from the research are impressive, with 115 million parcels delivered or returned via lockers in the past year. This represents 7% of all online orders (87 million deliveries) and 12% of all online returns (28 million). The adoption of parcel lockers is strong amongst younger consumers, with 66% of Gen Z online shoppers and 54% of Millennials utilising lockers in the past year. More than half of people under 45 utilise parcel lockers at least monthly, and middle-income shoppers are the most frequent users of parcel lockers, with 1 in 3 planning to utilise them more often this year. These statistics demonstrate the growing popularity of parcel lockers and their potential to become a mainstream delivery solution.
The growth of the parcel locker market is expected to continue, driven by increasing demand for convenient delivery solutions. InPost's results show a 39% year-on-year increase in processed parcels, with 24 million parcels processed in the first quarter of this year. The company has over 10,000 lockers and 16,000 out-of-home (OOH) locations in the UK, and is well-positioned to capitalise on the growing demand for parcel lockers. According to Neil Kuschel, CEO at InPost, "The locker market has experienced immense growth over the last year, thanks to the insatiable appetite of consumers for convenient delivery solutions that fit in seamlessly with their busy lives. Once considered a niche segment of the OOH delivery market that was mainly utilised by younger, digital-savvy shoppers, lockers have gone fully mainstream."
The growth of the parcel locker market can be attributed to several factors, including convenience, increased online shopping, sustainability, and cost savings. Parcel lockers offer a convenient and flexible way for consumers to collect, return, or send parcels at a time that suits them. The rise of e-commerce has led to an increase in parcel volumes, driving demand for alternative delivery solutions. Additionally, parcel lockers can help reduce carbon emissions by minimising the need for multiple delivery attempts and reducing congestion in urban areas. As the market continues to evolve, we can expect to see increased investment in parcel locker networks, improved technology, and the integration of parcel lockers with other services, such as parcel tracking and delivery notifications.
As the parcel locker market continues to grow, we can expect to see new innovations, investments, and expansions that will shape the future of the logistics industry. The success of parcel lockers in the UK will likely lead to expansion into other markets, both domestically and internationally. Logistics companies and retailers will need to adapt to the changing delivery landscape and invest in parcel locker networks to meet growing demand. The future of the parcel locker market looks promising, with opportunities for growth, innovation, and expansion. As the market continues to evolve, it will be interesting to see how parcel lockers become an integral part of the delivery ecosystem, providing a convenient, sustainable, and cost-effective solution for consumers and businesses alike.
eCommerce Market Stats
See some statistics relating to this week’s topics in the eCommerce market below.
Parcel locker eCommerce stats
- 25 million adults in the UK are expected to use parcel lockers in 2025, accounting for 3 in 5 adults.
- 150 million parcels are expected to be delivered or returned via lockers in 2025 in the UK.
- 10% of all online orders (120 million deliveries) are expected to be delivered to parcel lockers in 2025 in the UK.
- 35 million returns are expected to be sent via lockers in 2025, accounting for 15% of all online returns in the UK.
- 75% of Gen Z online shoppers are expected to use parcel lockers in 2025.
That’s all for this week…
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